Are Banks in Trouble?

With all the news about a global banking crisis, you may wonder what will happen at your bank. Gerard Cassidy recently covered the topic of banks in trouble at Bloomberg on the Economy. His group predicts failures moving from the large banks to the small banks, and they expect bank failures to number 150-300 over the next 3 years.

Note that deposits are safe under FDIC insurance. If your accounts are covered then the biggest risk you face is the risk of a hassle when it comes to cleaning up any messes. However, this would be the time to be extra safe and make sure that your accounts are indeed covered.

For some big-picture insight into the banking world and the problems your bank faces, listen to a fascinating discussion between Cassidy and Tom Keene at Bloomberg on the Economy (MP3 File).

Do you agree that the subprime debacle will continue to bring down banks in trouble? Tell us what you think in the comments.

Further reading:

• How FDIC Insurance Works
• FDIC Hiring, Preparing for Banks in Trouble